Dubai Telegraph - Putin, Italian firms talk business despite Ukraine tensions

More than 16 companies, including energy giant Enel, insurer Generali and tyre manufacturer Pirelli took part in the meeting organised by the Italian-Russian Chamber of Commerce. Energy firm Eni told AFP it had decided Tuesday to withdraw.

According to Russian news agencies, Putin hailed Italy as one of Moscow's "main economic partners" and amid worries over soaring gas prices, said Russia was a "reliable supplier".

The meeting was planned in November by the chamber, which seeks to boost business and investment ties between the eurozone's third-largest economy and Russia. According to the group, more than 500 Italian companies are active in Russia.

But it comes just as the United States and other Western powers have warned Moscow it risks punishing economic sanctions if it moves ahead with what they fear is an imminent invasion of Ukraine.

Italian Prime Minister Mario Draghi's government asked firms in which the Italian state has a stake not to take part in the meeting, according to a source close to one participant. The Italian state is the largest shareholder in Enel.

An Italian government official told AFP: "The meeting is of a private nature and no member of the Italian government will take part."

The chamber said it was the first time Putin had directly addressed an Italian business delegation.

Business leaders posed questions to and raised issues directly with Putin, "thus creating a debate, without political rhetoric" on trade issues, the economy, and industrial policy, among other topics, it said in a statement.

Eight Russian government ministers, including those from agriculture and economic development, accompanied Putin in the meeting.

- Doing business -

Putin said he was "willing to develop cooperation between the two countries and to attract Italian business... by creating favourable and stable conditions", the chamber's statement read.

Italy, which is heavily dependent on Russian gas, has a chronic trade deficit with Russia.

Gas prices have soared this winter, a surge thought to be partly due to a particularly cold winter and a return to economic activity after the pandemic.

But Moscow is also suspected of taking advantage of the tensions on the world market to limit supply and drive up prices.

"Our country is a reliable supplier of energy to Italian consumers," Putin told the meeting, according to Russian news agencies.

He said Italian energy firms continue to work with Russia's Gazprom on the basis of long-term contracts, "and can currently buy gas at prices well below those of the market".

He added that despite the pandemic and the "volatility" of the global economy, "our countries have managed to maintain economic cooperation at a relatively high level".

Putin also complained that "contacts and business travel are hampered" by the lack of an EU-Russia deal to recognise coronavirus vaccines.

NATO on Monday said it was sending jets and ships to bolster its eastern European flank, as the United States and European Union looked to coordinate a tough response to Russia if it invades Ukraine.

Italy's defence minister said Wednesday his country would uphold its commitments to the alliance while underlining the need for dialogue with Moscow for a peaceful solution in Ukraine.

Unlike most of its Western neighbours, Italy has historically relatively friendly ties with Putin, backed by strong, long-standing investments by Italian corporations in Russia.

Since becoming prime minister of Italy in February 2021, Draghi has stressed that Italy is firmly on the side of the European Union and NATO.

V.Munir--DT